Kiama residents are set to be slugged with a rate hike.
The Independent Pricing and Regulatory Tribunal (IPART) has approved Kiama council's application to increase general income by 16.42 per cent over the next two years.
According to IPART, the average residential rate would increase by $91 in 2019-20 and by $187 over two years.
The average business rate would rise by $83 in 2019-20 and by $190 over two years, while farmland rates would rise by $158 in 2019-20 and by $325 over two years.
IPART chair Dr Paul Paterson said the approval replaces a temporary special variation which expires on June 30, 2019.
That temporary variation was granted last year in place of the permanent variation requested by council as it failed at that time to meet one of the Office of Local Government criteria.
If adopted by council, the increase in revenue would be permanently retained in the rate base.
Council will now have an extra $3 million for maintaining existing services, infrastructure and community facilities, renewing infrastructure, and increasing its financial sustainability.
"Kiama council was able to meet the criteria for approval of the special variation by demonstrating a clear need for the additional revenue to fund asset renewals," IPART reported.
"We found the impact to be reasonable and that the council is taking steps to improve productivity and contain costs."
Kiama Mayor Mark Honey said the approval was essential for Kiama council to continue to meet community needs and expectations.
"This decision means we can continue with our Long Term Financial Plan, which in turn allows us to continue to serve our community to that same high level," Cr Honey said.
Council will consider its Draft Operational Plan for 2019/20, including the Special Rate Variation, at its May 21 meeting, before placing it on public exhibition.
Kiama council is among 13 councils across NSW (of a total of 128) to make a special variation application to increase rates for 2019-20.
IPART approved eight applications in full, three applications in part, and two applications were not approved.